SOURCE: Xtreme Motorsports of California, Inc.

February 26, 2007 16:00 ET

Xtreme Motorsports Launches New Value-Priced Performance Sandcar: The Sportster MT

BAKERSFIELD, CA -- (MARKET WIRE) -- February 26, 2007 -- Xtreme Motorsports of California, Inc. (PINKSHEETS: XTMS) ("Xtreme" or the "Company"), a manufacturer of extreme sandrails, desert and dual sport racecars, today announced the launch of a new line of 4-seat mid-travel performance sandcars to target first-time buyers looking to get involved in off-road motorsports at a reasonable price. The new line of turn-key racecars, dubbed the "Sportster MT" will retail between $17,500 and $24,000 and can be delivered in less than 45 days, a vast improvement over the 6-8 month delivery time for a custom sandcar.

Xtreme is building the Sportster MT line of cars to address the demand in the marketplace for fully featured, production line sandcars, with many of the same components found in high-end vehicles, without the high-end price. The hallmark of the design of this value-priced vehicle is the suspension system, which will have 14-16 inches of travel. Most "economy" sandcars have 5-7 inches of travel, whereas high-end models such as the 2007 Sandmaster have up to 24 inches of travel. The higher the "travel," or vertical differential, the better performance and handling drivers and riders experience in extreme terrain.

"Through the roll-out of this new vehicle, I hope to communicate to both customers and shareholders alike our goal in positioning Xtreme as the value leader of the off-road motorsports industry," commented Alan McCaa, President & CEO of Xtreme Motorsports. "The Sportster MT, which is almost a year in the making, represents our best in manufacturing an affordable, yet powerful, racing sandcar. It's everything a family needs to get involved in off-roading, whether in sand or dirt environments.

"Although customers will be able to finance the Sportster MT for as little as $125 per month, we want them to know that this is an affordable car, not a 'budget' or 'economy' vehicle; it will stand up to the most adventurous users and arduous conditions," finished McCaa.

The Sportster MT models will offer a choice of colors, Garmin eTrex GPS navigation, King Shocks, heavy-duty aluminum alloy wheels, race-grade suspension seats, 5-point seat belts and chromed accessories. Buyers will be able to choose from three different engines, available in 150, 175 and 200 horsepower configurations. In addition, customers can choose dirt or sand tires based on the primary terrain in which the racecars will be used.

Xtreme is taking delivery of the first of the frames and components today and will make available photos and detailed specification of the Sportster MT model on its website by the middle of March 2007.

About Xtreme Motorsports of California, Inc.

Xtreme Motorsports is a manufacturer of custom and production-line sandrails, desert and dual sport racecars. Founded in 1983, Xtreme's sandcars have been sold to customers in England, the United Arab Emirates, Australia, South America and the US. For more information, visit the corporate web site

Forward-Looking Statements

Certain statements in this release, and other written or oral statements made by the Company, including the use of the words "expect," "anticipate," "estimate," "project," "forecast," "outlook," "target," "objective," "plan," "goal," "pursue," "on track," and similar expressions, are "forward-looking statements" and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements of the company to be different from those expressed or implied. The Company assumes no obligation and does not intend to update these forward-looking statements and takes no obligation to update or correct information prepared by third parties that are not paid for by the Company.

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